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(PCC) Program on Chinese Cities – Thoughts on Overseas Travels Series

Authors:  Chen Xu,

Visiting Scholar, Department of City and Regional Planning, University of North Carolina at Chapel Hill. chadxu@hotmail.com


Briar Chapel Community is located in Chapel Hill, North Carolina, on the east coast of the United States. It is one of the first and largest green communities in the Research Triangle Park (RTP) area. It has been certified as a green residential community by the National Association of Home Builders (NABH), an organization consisting of over 700 state and local associations with more than 140,000 members, about one-third of whom are home builders and remodelers. The rest are involved in sales and marketing, housing finance, and the manufacturing and supply of building materials, serving as the “voice” of the American housing industry, with about 80% of new homes in the U.S. built by its members. Briar Chapel has been rated the best community in the Chapel Hill area for eight consecutive years and has twice won the Best Community Landscape Award. It is a model of sustainable living widely acclaimed in North Carolina and across the United States (Figure 1).

 

Figure 1 Aerial view of Briar Chapel Community Source: https://www.mckimcreed.com/portfolio-page/briar-chapel/

 

The Briar Chapel community project officially launched in September 2008 and has now largely transitioned from selling new homes to selling resale homes, growing steadily into a complete and thriving community over nearly 20 years of development from the initial planning stages. However, the project has experienced many difficulties and crises, primarily due to changes in the external environment and regional regulations and policies. The developer, Newland Real Estate Group, with its extensive development experience, has continuously adjusted and improved its products proactively in response to actual conditions and market changes, ultimately achieving a “win-win” situation. The company upheld its sustainable development philosophy, established good partnerships with multiple stakeholders, successfully sold housing products, and created a high-quality living environment for residents.

Through interviews and exchanges with developers and on-site investigations, I have obtained first-hand information. This article analyzes the success secrets and development experiences of the Briar Chapel project from four perspectives: development strategy, emergency response, pain point management, and facility support, aiming to provide beneficial insights for related practices in China.

 

1 Developer Background and Project Origin

Newland Real Estate, a U.S.-based developer, has over 50 years of real estate development experience. It is a comprehensive real estate development company adhering to the concept of sustainable development, emphasizing environmental awareness and aiming to reconstruct the relationship between humans and nature. The company is also a member of Brookfield Asset Management Group, one of the world’s largest asset management companies, which has developed and managed over 900 projects globally, covering almost all types of commercial real estate.

In 2000, by chance, Bob McLeod, Chairman of the Board of Newland Real Estate Group, came to Chapel Hill, North Carolina, as his son was about to attend UNC at Chapel Hill (Figure 2). He was soon charmed by the mild climate and, with his keen strategic vision, quickly realized the local advantages, including low unemployment, moderate living costs, and the strong technological and academic atmosphere created by the Research Triangle Park. He subsequently began acquiring land and decided to invest in building a large community here, marking the beginning of the Briar Chapel project.

 

Figure 2 Bob McLeod, Chairman of the Board, Newland Real Estate Group Source: https://www.newlandco.com/about/history/

 

2 Project Overview

The Briar Chapel project site is located in Chatham County, on the west side of U.S. Highway 15-501, 8 miles from UNC at Chapel Hill, 17 miles from Duke University, and 23 miles from Raleigh-Durham International Airport (Figure 3). The total area of the site is 1,600 acres (approximately 6.5 km²). Historically, the area was a tobacco plantation with gently rolling terrain and two streams running through it, covered with excellent original vegetation such as oak and hickory. Additionally, before development, the site already had nearly 2,800 different types of residences.

 

Figure 3 Location Map of the Briar Chapel Project

 

3 Development Strategy

As the land acquisition plan was implemented, preliminary planning and design work began simultaneously, with the initial master plan for the project site completed in 2005. Adhering to the corporate mission of sustainable development and the commitment to building a green community, the site preserved 900 acres of open space (over 55% of the total site area) for parks and other green space facilities, educational, sports, and other public facilities, as well as commercial facilities for community residents. The developer promised to integrate the community road system with the native roadways and donate the roads to the local government after the project’s completion, reducing government construction and maintenance costs (Figure 4). Additionally, a rainwater collection and recycling system was planned and designed to irrigate public areas with reclaimed water.

 

Figure 4 Seamless integration of native roads with newly built community roads

 

All homes in Briar Chapel are built to the third-party National Green Building Standard (NGBS), which requires residential design and construction to achieve high performance in six areas: site design, resource efficiency, water efficiency, energy efficiency, indoor environmental quality, and building operation and maintenance. NGBS-certified homes in Briar Chapel account for 39% of all NGBS homes in North Carolina. The strategic approach to sustainable development has made the community’s average energy efficiency (HERS Index) far superior to the state average, making the homes 24% more energy-efficient than standard North Carolina homes. Although the community’s energy-efficient buildings increased construction and management costs, the implementation of these development strategies and standards still attracted many residents with shared values and environmental awareness. Over time, the actual energy savings have become apparent—since its opening in 2008, it has saved community residents over $5 million in expenses, according to data from Newland Real Estate Group’s website.

 

4 Crisis Management

Before 2007, the U.S. real estate market experienced a period of rapid growth, with continuously rising home prices leading to a market bubble. The year 2007 was a critical year for the U.S. real estate market, as the subprime mortgage crisis erupted, causing home prices to plummet and numerous foreclosures. Consequently, consumer demand for housing changed, with many opting to rent rather than buy or choosing more affordable housing types. Briar Chapel officially launched in September 2008, at the height of the financial crisis in the United States. This sudden downturn severely impacted the newly launched product, causing a significant drop in Briar Chapel community home prices.

Newland Real Estate quickly responded by leveraging its extensive development experience and data accumulation, combined with its sustainable development philosophy, to seek new development models. This included compact communities and sustainable development projects to adapt to market changes and meet new consumer demands. First, they adopted compact development according to Chatham County’s Compact Community Ordinance (CCO), believing it could carve out a new path in the market environment at that time. Consequently, the Briar Chapel project was redesigned with smaller lots to reduce development intensity, allowing more land to be used for public spaces for residents. Chatham County’s recognition and support for compact communities facilitated the project’s progress. Second, they incorporated green building evaluation criteria, including environmental protection for the entire area, soil and water conservation during the construction of water, electricity, and road systems, and detailed investigation and testing measures and standards for natural soil and geological conditions before, during, and after development.

The creation of a sustainable environment, the establishment of compact communities, and the provision of rich public facilities met residents’ needs and desires for high-quality living environments, significantly enhancing the project’s competitiveness. As a result, Briar Chapel’s community housing prices were effectively controlled, avoiding intense competition and high risks in the low-end market.

Newland Real Estate faced the crisis with a proactive attitude, maintaining consumers’ demands for controllable total prices, ensuring product diversity and adaptability, and retaining flexibility for future market changes. The variety and comprehensiveness of Briar Chapel’s residential products include single-family homes, custom homes, townhouses, “55+ homes” (communities for people aged 55 and above, which are single-story and have no basements; children are not allowed to reside in this community for more than one week to ensure quietness), and duplex condos. The different housing prices range from $180 to $375 per square foot, showing the diversity of home sizes and styles within the community (Figure 5).

 

Figure 5 Street view of Briar Chapel Community Source: https://www.mckimcreed.com/portfolio-page/briar-chapel/briar-chapel-2/

 

5 Pain Point Management

U.S. Highway 15-501 is approximately 2 miles (3.3 kilometers) from the Briar Chapel project, serving as the main thoroughfare to access the community. One side of the main road has high-voltage power lines, which can visually affect the project’s quality and residents’ impressions of the community.

Newland Real Estate addressed this issue by conducting multiple discussions with the design team. Ultimately, they drew inspiration from the Biltmore Estate in North Carolina, a private estate built between 1889 and 1895 in Asheville by George Washington Vanderbilt II, known for its French Renaissance architecture. The 16,300 m² estate is the largest private residence in the U.S. and a symbol of the Gilded Age. They creatively designed this 2-mile road as a beautiful welcoming avenue: first, a wide green belt was divided in the middle of the two-way road, retaining the original tall trees. Expansive lawns were intentionally extended on both sides of the road, broadening the visual space. Large rocks were organically arranged in the green belt during road construction, creating a sense of orderly layering.

The carefully designed curved road naturally slows down passing vehicles, creating conditions for appreciating the scenery along the way. The natural undulations of the terrain, coupled with the tall trees meticulously placed, effectively concealed the power lines. As a result, residents can pleasantly drive through the well-preserved forest and Bennett Mountain, cross Bolin Creek, and enter the community (Figure 6).

 

Figure 6 Photos of Briar Chapel Community roads and landscapes

 

6 Facility Support

Briar Chapel Community has planned a living and commercial support area of over 5 acres (about 20,000 m²) at a prominent location at the main entrance (Figure 7). The entire area is divided into two independent plots by a two-way road, with one side designated for creative retail and living support functions and the other for dining and entertainment. The commercial facilities in this area are characterized by being “small and refined,” covering supermarkets, restaurants, bars, coffee shops, beauty and hair salons, optometry shops, and medical institutions within a limited area. Medical facilities include not only general hospitals but also a pediatric clinic, a dental clinic, and an independent pharmacy. This area is connected to the main driving road of the community and designed walking paths that allow residents to easily reach other parts of the community. This not only enhances the recognizability of the main entrance of the community but also increases the community’s attractiveness to external consumers through commercial facilities.

 

Figure 7 Aerial view of supporting service area Source: https://www.briarchapelnc.com/whats-happening/blog/posts-by-date/2020/april/briar-chapel-restaurants-give-back/

 

The Briar Chapel Community includes a kindergarten, a primary school under construction, a middle school (the first public middle school in North Carolina to receive U.S. LEED green building certification, achieving outstanding results in science, sports, and arts. LEED is a “green building evaluation system” established and promoted by the U.S. Green Building Council. To receive this certification, buildings or communities must demonstrate excellent performance in energy saving, water saving, CO2 emission reduction, and indoor living quality improvement), a charter high school (a school legislated by the state government and privately operated by chartered teachers, parents, educational professional groups, or other non-profit organizations, funded by the government but exempt from routine educational administrative regulations. Usually, charter high schools have excellent graduation rates and student performance. This particular charter high school ranks in the top ten public high schools in North Carolina and among the top 150 excellent schools nationwide), a community college, and the Chatham County Public Library. All of these public educational and cultural facilities were donated free of charge by the developer.

 

7 Conclusion

With the transformation of China’s industrial structure and socio-economic changes, the real estate industry has entered a downward cycle. Against this backdrop, consumer demand and requirements for housing have also changed. How to explore better and longer-term development strategies during a downward cycle has become a valuable topic in the industry.

The success of the Briar Chapel project reveals several key strategies: adhering to the core principle of sustainable development, proactively giving up short-term interests that conflict with long-term benefits and values, overcoming challenging economic cycle obstacles from the perspective of residents, looking ahead, establishing an excellent brand image and corporate reputation, striving to gain the trust of partners, investors, stakeholders, builders, and consumers, respecting nature, and promoting the harmonious development of humans and nature. Forward-thinking and a continuously enterprising spirit are the keys to nurturing true innovation.

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